Fix and flip loans: the purchase and the rehab in one loan, sized on the finished house.

Most lenders advance 85–100% of the purchase price, depending on experience, plus up to 100% of the rehab budget, then cap the total at 70–80% of after-repair value. You get the lower figure. On a $250,000 purchase with $60,000 of work and a $400,000 ARV, 90% plus 100% is $285,000, which fits under a 75% ARV cap of $300,000.

Yes. Several lenders publish no experience requirement, with program maximums of 90% of purchase and 75% of ARV. Expect less leverage in practice: tiered lenders start first-time flippers around 85% of purchase and 70% of ARV on light rehab, and lower on heavy rehab. Some lenders require at least one investment-property sale or refinance in the last 36 months.

Published minimums ran from 600 to 660 in October 2026. A higher score earns better pricing and leverage — one lender reserves its 100%-of-purchase tier for borrowers with a 720+ score and 10 or more flips in the last three years. Expect the lender to pull your credit.

Only with a strong track record, and rarely with no cash at all. A few programs advertise 100% of the price plus 100% of the rehab; one lender's top tier requires 10 or more flips in three years, five of them in-state, a 720+ score and a loan of $800,000 or less. The ARV cap usually still binds: at 75% of a $400,000 ARV, a $250,000 house with $60,000 of work borrows $300,000, leaving $10,000 plus closing costs, points and carry.

The rehab portion is held back at closing. When you finish a phase, you request a draw; the lender verifies the work by inspection or by photo and video, then releases the money, typically within 24–48 hours. You pay interest only on funds drawn, but you or your contractor front each phase until it's verified.

Almost always. In 2025 federal HMDA data, 91% of short-term investor loans were interest-only and 95.1% ended in a balloon, meaning the whole balance is due at maturity. On a $285,000 flip loan at 10.5%, the payment starts near $1,969 a month on the $225,000 funded at closing and rises to about $2,494 once the rehab is fully drawn. The sale repays the principal.

Usually, though not always a traditional one. Many lenders order an appraisal with interior access that reports both the as-is value and the after-repair value; at least one values properties in-house with no third-party appraisal. Either way, the lender's ARV — not your estimate — sets the cap on the loan, so bring closed sales of comparable finished homes to support your number.

The loan can shrink, and the difference comes from you. With a 75% ARV cap, every $10,000 cut from the value takes $7,500 off the maximum loan. On a deal sized at $285,000 against a $400,000 ARV, a $375,000 valuation caps the loan at $281,250, so you bring $3,750 more at closing — and if the house sells at that value, your profit is $25,000 lower too.

A rule of thumb for a maximum offer: 70% of after-repair value minus the rehab budget. On a $400,000 ARV with $60,000 of work, that's $220,000. The 30% margin is meant to cover loan costs, holding, selling and profit. Lenders don't use it — they apply their own ARV cap — but it's a quick filter before you run full numbers.

Yes, if the house will rent. You replace the flip loan with a DSCR (debt service coverage ratio) loan, which sizes a 30-year mortgage on whether the rent covers the payment, not on your income. Most cash-out refinances top out around 75% of appraised value, and outside lenders typically want about 90 days of ownership first; some waive that when they made the flip loan. The new loan has to cover the payoff and its own costs.

Often, if you move quickly. Paid with your own cash or home equity? One lender will refinance the house within 6 months of the purchase, putting that money back in your account while the renovation is still ahead of you. After 6 months the property is treated as a seasoned refinance and sized on its current value. It's how investors who win cash-only auctions or fast off-market deals put their money back to work.

On 2–4 units, yes: most programs take 1–4 unit homes, townhomes and condos. Five or more units is a different market. One lender's ARV program covers 5+ unit apartments and mixed-use buildings with loans of $250,000–$3 million and a $375,000 minimum ARV, and multifamily bridge programs published 80–85% of cost, 70–75% of ARV and 700–725 minimum scores in October 2026.

Ask for an extension before maturity, not after. Many lenders offer them for a fee — one published schedule charges 1% of the loan for three months and 2.5% for six — and monthly interest keeps running. Reaching maturity without one can trigger default terms, so choose a term with slack: 12 months for a six-month plan.

At some lenders, yes: they lend only to an LLC or corporation, and most others prefer one. Either way, expect to sign a personal guarantee, and full recourse is common, so your own assets stand behind the loan however you hold title. Lenders that require an entity ask for its formation and good-standing documents. How to structure the entity is a question for an attorney or CPA.

It depends on how the IRS sees the house. If it's a capital asset you held one year or less, the gain is short-term and taxed at ordinary income rates. Investors who buy mainly to resell may find their houses treated as property held for sale to customers, which isn't a capital asset at all. Which applies to you is a question for a CPA, ideally before your first sale.

No. Fix and flip loans are business-purpose loans for investment property, and neither you nor a family member can live in it. If you're buying a home to renovate and occupy, you need a residential renovation mortgage from a consumer lender instead.